The Alaska employee separation process can vary significantly from other states. Because companies need to adhere to Alaska’s specific state law requirements, it can be complicated to determine which procedures you’ll need to follow, and when.
This guide and employee separation checklist will help you learn the key components of employee termination laws in Alaska. This includes final paycheck requirements, separation notices, severance agreements, reporting employee termination, and withdrawing registration to do business in Alaska.
Alaska Employee Separation Checklist
- Provide final paycheck
- Issue separation notice
- Execute severance agreement
- Report termination
- Withdraw registration to do business
1. Final Paycheck Requirements in Alaska
Alaska state law dictates specific post-separation payment guidelines. If an employee is terminated, they must receive their final paycheck within three working days. For employees who resign, payment is due on the next regular payday that occurs at least three days after the employer receives the resignation notice. The final paycheck must include all wages, salaries, or other compensation for labor or services.
While employers are not obligated to pay out accrued and unused vacation time upon separation, this may be required if specified in the employee’s contract or company policy. The final paycheck should be delivered to the usual payment location, or another agreed-upon location.
Employers who fail to meet these payment obligations may face penalties, including payment of the owed amount plus an additional 90 days’ wages at the employee’s regular pay rate.
2. Firing Employees in Alaska
Because Alaska is an at-will employment state, employers can terminate employees for any reason, as long as it is not illegal. When firing employees, employers need to inform the employees that they are covered by unemployment insurance.
3. Severance Agreements in Alaska
When employers in Alaska execute claims releases with employees, they must clearly specify the federal and state law claims being released. Alaska state law includes claims under the state’s minimum wage and overtime laws, as well as the Alaska Human Rights Act. It’s important that the release only covers claims arising before the agreement’s effective date, not any that may arise afterward.
Furthermore, employers should carefully review applicable federal laws. The National Labor Relations Board (NLRB) recently issued a decision, along with guidance from its General Counsel, that limits the use of non-disparagement and confidentiality provisions in severance agreements.
4. Reporting Employee Termination in Alaska
If an employee has an Income Withholding for Support Order (IWO), you must promptly report their termination to the child support agency, court, or attorney who issued the order. Online reporting is available here through the Federal Office of Child Support Enforcement.
Alternatively, you can report the termination by completing the Notification of Employment Termination or Income Status section of the IWO and sending it via fax or mail to the issuing child support agency.
You will need the following information:
- Employee Name
- Employee Case Identifier
- Last Known Home Address
- New Employer Address (if known)
- Date of Employee Separation
5. Withdraw Registration to do Business in Alaska
When an organization ceases operations in Alaska, such as when it separates from its last Alaska-based employee, it can formally withdraw its registration. This can be accomplished by submitting the appropriate form to the Secretary of State. The required form depends on the legal entity type.
For-Profit Corporations must file this Certificate of Withdrawal, and Non-Profit Corporations must file this specific Certificate of Withdrawal. Limited Liability Companies (LLCs), on the other hand, must file a Certificate of Cancellation.
Stay Compliant with Alaska Employee Separation Requirements
Staying current with state-specific Alaska Employee Separation Agreement requirements is the key to fulfilling employer obligations and respecting employee rights.
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